Bankrupt Pizza Hut franchisee EYM Pizza is planning to sell its 127 restaurants as part of a financial restructuring.

The company is partnering with National Franchise Sales, an M&A advisory and brokerage firm, to identify qualified buyers and facilitate the sale. The main goal is to maximize recovery for creditors and find a path forward for the restaurants. The locations are based in Illinois, Indiana, Wisconsin, South Carolina, and Georgia.

“National Franchise Sales is dedicated to navigating this challenging period with EYM Pizza L.P. and its affiliates. Our goal is to ensure a smooth transition and maximize value for all parties impacted by this process,” Alan Gallup, lead advisor for the NFS Asset Recovery Team, said in a statement.

EYM filed for bankruptcy in July after Pizza Hut sued the franchisee over financial mismanagement, including missed payments and poor operational performance. According to court documents, EYM Pizza reportedly owed over $3 million in overdue payments and failed to meet performance standards, despite a forbearance agreement meant to help resolve these issues. EYM had previously sued Pizza Hut, claiming the franchisor failed to modernize, but the court allowed Pizza Hut to enforce its rights.

From 2019 to 2023, while Pizza Hut’s overall system saw a 7 percent increase in same-store sales, EYM’s locations experienced a 10 percent decline—a 17 percent disparity. Operational performance also fell short, with EYM’s restaurants failing quality assessments at a rate significantly higher than the average Pizza Hut franchise.

The franchisee said in court documents that it has invested about $46.6 million in Pizza Hut restaurants. It owes about $23.05 million to banks.

EYM entered the Pizza system in 2016 when it bought franchisee territories in Illinois for $10.85 million and Indiana for $8.67 million. The group followed that up with the acquisition of stores in Georgia and South Carolina for $9.02 million. In 2018, EYM took over units in Wisconsin for $6.88 million and bought another 16 restaurants for $1.56 million. The franchisee was highly critical of Pizza Hut in its lawsuit, citing the brand lost its title as the largest pizza chain in terms of systemwide sales to Domino’s in 2017 and that the company wasn’t keeping up with modern times and adapting to current technology.

National Franchise Sales is the same organization helping MOD Pizza refranchise its system.